FY 15 Budget Review

FY 2015 Rate Model

FY15 Preliminary Sufficiency Sheet Highlights

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FY 2013 o FY 2014 o FY 2015 o

Updated to match the CAFR audited results

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Shows the Adopted Budget.

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Includes the initial base budget.

o Revenues - Water/Sewer revenue has been updated with FY 2013 consumption, which is slightly less than FY 2012 consumption. o Line 27 – PAYGO for Nutrient Reduction /Watershed Protection increase to $1.5M to match the capital project expense. o Line 28- PAYGO for Infrastructure Replacement was added, which is the amount to keep the fund balance from exceeding 100% of the O&M. o Wake Forest revenue projected at a level which assumes they will have completed the merger in FY 2014.

Parity Coverage Ratios

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FY 2013 o

Projected - 2.42x Actual - 2.65x

o

 Parity coverage for FY 2015 is currently at 2.25x  The last sufficiency from the FY 2014 rate process showed the parity coverage at 2.23x, this leaves room for an additional $1.15 million in operating expenses  The forecast from the bonds presented parity coverage at 2.16x in FY 2015; if this is our target we can add $4.5 million in operating expenses.